Seed money: New USDA program aimed at helping small farmers

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To learn more about the new USDA microloans program, contact the Weld County Farm Service Agency office at 4302 9th St. Road in Greeley, or call the office at (970) 356-8097 ext. 2.

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The locally grown food movement in Weld County has seen its share of growth, but involved locals say it’s not yet what it could or should be.

Perhaps a new federal program, just announced this week, can give it the boost it needs, they say.

U.S. Agriculture Secretary Tom Vilsack told The Associated Press on Monday the U.S. Department of Agriculture’s new “microloans” of up to $35,000 are designed to help bolster small, family-run farms — noting that their direct-to-consumer sales are a fast-growing sector of the farming industry.

There’s been a 60 percent increase in farmers markets in the past three years.

The Greeley Farmers Market is now about 10 times larger than it was when it started 20 years ago, and even this year — during the hottest and driest year on record for the city, which made produce growing difficult — it only saw a slight decrease in sales.

However, the cost of raising produce is continually increasing, local growers say, with rising seed and fuel prices — although, gas has dropped some recently — and other swelling expenses.

Working on just one or a few acres — maybe only 1/8 of an acre — produces limited income that often doesn’t give growers the profits needed to expand.

Some local growers said this week they’re actually in doubt as to whether they’ll be vendors next year at the Greeley Farmers Market because of the high costs and limited profits.

“It’s an investment, both in time and money ... and because of that it can be a challenge to find enough adequate, small-scale growers to support farmers markets and other direct-to-consumer markets,” said Karen Scopel, the community development and natural resource planner for the city of Greeley, who oversees operations of the local farmers market.

Deb Newsome grows a variety of produce near Ault, food that goes to the Greeley Farmers Market, or is sold to her 25 customers through the Community Supported Agriculture program. She said the new USDA microloans are “something that could certainly help” bolster an expansion of the locally grown food movement.

Newsome herself said she’s looking to expand her winter production, but would need to increase the temperature of her greenhouse during the cold season by 10-15 degrees to grow certain crops.

Growing limited produce in her greenhouse now, she’s already spending $300-500 per month, she said, and increasing the temperature the 10-15 degrees needed would be pricey.

To afford heating for her greenhouse, Newsome said she would either have to increase her number of CSA customers, or maybe borrow a little money.

The interest rate for the new microloan program changes monthly, and is currently 1.25 percent, according to the USDA, and the loan does not have to be repaid for seven years.

The microloan program provides a more simplified application process compared with traditional farm loans.

The loans can cover the costs of seed, equipment, land rents, irrigation, marketing, distribution and other expenses.

According to the AP, Vilsack said the new loan program will help organic producers and small farmers who had been benefiting from grants and programs under the 2008 farm bill, which had not been extended by Congress.

Vilsack also said the new “microloans” could assist disadvantaged farmers and military veterans seeking to start a farm, who might otherwise have trouble qualifying for small loans from banks or through other USDA loan programs.

According to USDA statistics, since 2009 the federal government has issued more than 128,000 loans totaling nearly $18 billion through the Farm Service Agency Operating Loan Program. It has also increased the number of loans to beginning farmers and ranchers from 11,000 loans in 2008 to 15,000 loans in 2011.